Seattle Washington Building Expert Directory

Delays Caused When Government (Owner) Pushes Contractor’s Work Into Rainy / Adverse Weather Season

January 13, 2020 — David Adelstein - Florida Construction Legal Updates
There are a number of horizontal construction projects where a contractor’s sequence of work and schedule is predicated on avoiding the rainy season (or certain force majeure events). The reason is that the rainy season will result in delays due to the inability to work (and work efficiently) during the adverse weather (including flooding caused by the weather). If the work is pushed into the rainy season, is such delay compensable if the government (or owner) delayed the project that pushed work out into the rainy season? It very well can be. For example, in Meridian Engineering Co. v. U.S., 2019 WL 4594233 (Fed. Cl. 2019), a contractor was hired by the Army Corps of Engineers to construct a flood control project for a channel in Arizona. Due to delays, including those caused by the government, the project was pushed into the monsoon season, which caused additional delays largely due to flooding caused by the heavy rain. One issue was whether such delays were compensable to the contractor – the government raised the argument that the contractor assumed the risk of potential flooding from the rainy season. The Court found this argument unconvincing:

[The contractor’s] initial construction schedule planned for a completion of the channel invert work, a necessary step in protecting the site from flooding, to be completed by late June 2008…[M]any issues arose in the project’s early stages that led to cumulative substantial delay, including those caused by the government’s failure….The government cannot now claim that [the contractor] assumed the risk of flooding from monsoon season when the government was largely responsible for [the contractor’s] inability to complete the project prior to the beginning of the monsoon season. Simply put, the government cannot escape liability for flood damages when the government is responsible for causing the contractor to be working during the flood-prone season. Meridian Engineering, 2019 WL at *7 (internal citations omitted)

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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

U.S. Stocks Fluctuate Near Record After Housing Data

February 25, 2014 — Lu Wang and Callie Bost – Bloomberg
U.S. stocks fluctuated near a record high after data showed slower growth in home prices and a drop in consumer confidence, while Macy’s Inc. and Home Depot Inc. reported higher-than-estimated earnings. Macy’s and Home Depot rose at least 3.1 percent. Tesla Motors Inc. climbed 16 percent as Morgan Stanley more than doubled its projected price for the stock. Office Depot Inc. slumped 11 percent after reporting an unexpected loss. Tenet Healthcare Corp. declined 11 percent as its forecast missed analysts’ estimates. The S&P 500 (SPX) gained 0.1 percent to 1,848.59 at 1:59 p.m. in New York, poised for the highest close ever. Earlier, the U.S. equity benchmark lost 0.4 percent. The Dow Jones Industrial Average advanced 14.05 points, or 0.1 percent, to 16,221.19. Trading in S&P 500 stocks was 7 percent below the 30-day average during this time of the day. Ms. Wang may be contacted at lwang8@bloomberg.net; Ms. Bost may be contacted at cbost2@bloomberg.net Read the court decision
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Reprinted courtesy of Lu Wang and Callie Bost, Bloomberg

Construction Defect Claim not Barred by Prior Arbitration

October 28, 2015 — Beverley BevenFlorez-CDJ STAFF
According to Stan Martin of Commonsense Construction Law LLC, the Appellate Court of Connecticut ruled in favor of the owner of a twenty-two building development in a construction defect suit despite the contractor’s objection “that the lawsuit was barred by doctrines of res judicata or collateral estoppel.” When issues of “construction and alleged defects” arose in 1996, the “contractor eventually filed for arbitration, seeking the contract balance.” The contractor was awarded $82,812.81. During the arbitration, “no claims for defective construction were advanced.” Read the court decision
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Emerging World Needs $1.5 Trillion for Green Buildings, IFC Says

December 11, 2023 — Natasha White - Bloomberg
The International Finance Corporation is looking to develop a guarantee facility for private investors to boost finance for greener construction in emerging markets, as growing populations, urbanization and industrialization are set to spur pollution far beyond safe limits. IFC, the world’s largest global development institution focused on the private sector in low-income countries, is working with its counterparts in the World Bank Group to “create a one-stop shop for guarantees offered to private investors,” Susan Lund, vice president for economics and private sector development, told Bloomberg in an interview. We have “really high aspirations to scale that up dramatically for climate finance and in particular for green buildings and decarbonizing the construction sector,” she said. Lund’s comments follow a recent speech given by World Bank President Ajay Banga who said the bank is working to better unify guarantee insurance across the institutions. Read the court decision
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Reprinted courtesy of Natasha White, Bloomberg

Slowing Home Sales Show U.S. Market Lacks Momentum: Economy

August 27, 2014 — Lorraine Woellert – Bloomberg
The pace of new-home sales fell to the slowest in four months in July, signaling U.S. real estate lacks the vigor to propel faster growth in the economy. Purchases unexpectedly declined 2.4 percent to a 412,000 annualized pace, weaker than the lowest estimate of economists surveyed by Bloomberg, Commerce Department data showed today in Washington. June purchases were revised up to a 422,000 rate after a May gain that was also bigger than previously estimated. Housing has advanced in fits and starts this year as tight credit and slow wage growth kept some prospective buyers from taking advantage of historically low borrowing costs. Bigger job and income gains, along with a further slowdown in price appreciation, would help make properties more affordable. Read the court decision
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Reprinted courtesy of Lorraine Woellert, Bloomberg
Ms. Woellert may be contacted at lwoellert@bloomberg.net

Construction Defect Specialist Joins Kansas City Firm

January 13, 2014 — CDJ STAFF
David Schatz, whose practice specializes in construction disputes and defects, has joined the Kansas City, Missouri firm Spencer Fane Britt & Brown LLP in their litigation practice group. Mr. Schatz’s expertise also includes banking and finance, banking litigation, commercial disputes, insurance, surety, employment, contract claims, and personal injury. Pat Whalen, Chairman of Spencer Fane Britt & Brown, said that Schatz “brings great experience across a range of industries, but many of us in Kansas City are particularly pleased by his construction and general litigation credentials, which will fit will with the resources we’re building in those areas.” Read the court decision
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California Supreme Court McMillin Ruling

January 24, 2018 — Don MacGregor - CDJ STAFF
Reaction to the recent California Supreme Court ruling in McMillin Albany LLC v. The Superior Court of Kern County has been both swift and diverse, with many notable California law firms weighing in on the potential impact this landmark ruling may have on the Construction Industry and construction defect litigation. In our ongoing desire to serve as a meaningful and comprehensive provider of news and information for Construction and Claims Professionals, we have included a selected number of the submissions we have received regarding this very important judicial ruling. Read the court decision
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Measure Of Damages for Breach of Construction Contract

October 18, 2021 — David Adelstein - Florida Construction Legal Updates
How do you determine damages for a breach of a construction contract? If you are interested in pursing a breach of a construction contract action, this is something you NEED TO KNOW! The recent Fourth District Court of Appeal’s decision in Cano, Inc. v. Judet, 46 Fla. L. Weekly D2083b (Fla. 4th DCA 201) explains:

Where a contractor breaches a construction contract, and the owner sues for breach of contract and the cost to complete, the measure of damages is the difference between the contract price and the reasonable cost to perform the contract. See Grossman Holdings Ltd. v. Hourihan, 414 So. 2d 1037, 1039-40 (Fla. 1982). In Grossman, the supreme court adopted subsection 346(1)(a) of the Restatement (First) of Contracts (1932), which it concluded was “designed to restore the injured party to the condition he would have been in if the contract had been performed.” Id. at 1039. In other words, the owner will obtain the benefit of his bargain [and this is known as benefit of the bargain damages]. But where there is a total breach of the contract as opposed to a partial breach, an injured party may elect to treat the contract as void and seek damages that will restore him to the position that he was in prior to entering into the contract or the party may seek the benefit of his bargain. See McCray v. Murray, 423 So. 2d 559, 561 (Fla. 1st DCA 1982).

In Judet, an owner entered into a fixed price contract with a contractor to repair damage from a lightning strike. The contract amount was $300,000 payable in $30,000 installments. A few months after the contractor commenced performance, the owner terminated the contractor because the owner learned the contractor had not obtained required electrical and plumbing permits. At this time, the owner had paid the contractor $90,000. The contractor recorded a $40,000 lien for an amount it claimed it was owed and filed a lawsuit to foreclose its construction lien. The owner counter-sued the contractor to recover a claimed over-payment and a disgorgement of monies for unpermitted work. The owner was NOT claiming benefit of the bargain damages, but rather, damages for the contractor’s total breach “to restore him to the position that he was in prior to entering into the contract.” Read the court decision
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Reprinted courtesy of David Adelstein, Kirwin Norris, P.A.
Mr. Adelstein may be contacted at dma@kirwinnorris.com

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